Beef and cattle prices are strong right now — not just in Uruguay, but globally. Supply shortages in the US combined with rising demand across the Far East have created real momentum in meat markets, and farm owners across Uruguay are taking notice, shifting more focus onto their cattle operations. To give an idea of prices, a pregnant heifer may sell for a price between 1200 and 1400 USD.

The shift tends to take one of two forms. Some operations expand their own feed production, growing more grain on-farm to convert directly into kilos of steer. Feedlots are a good business option in the current market. Others move into cattle breeding, building their own herd rather than paying rising prices to buy replacement animals and maintain a healthy stocking rate. Which path makes sense depends heavily on the individual farm — its soil quality, its layout, and the staff available to run it.

These are medium-term decisions, and they hinge on where cattle prices are headed over the next few years. The consensus among market analysts is encouraging: most point to a positive outlook for cattle prices continuing well into the future.

In July all farmers in Uruguay need to declare their herd to the authorities. It will be interesting to see the composition this year and then compare it to the herd next year.